Skip to main content

Asian LNG spot prices drop below UK levels prompting cargo diversions

Published by , Editor
LNG Industry,

According to Reuters, Asian LNG spot prices have fallen below the UK’s current gas price, reversing a multi-year trend and prompting the redirection of several LNG cargoes from Asia to Europe.

Until now, the trend has been that Asian LNG prices have risen higher than European prices during the winter period as the region experiences a strong spike in demand. However, this year Asian countries have experienced an atypically warm winter leaving winter stockpiles virtually intact. This has resulted in the December and January prices for the region falling below the levels of the previous two years, and, significantly, below current European prices.

Indeed, it has been reported that Royal Dutch Shell recently lowered its offer for an Asian spot cargo for March delivery from approximately US$7.25 to US$7.10 per million Btu. Meanwhile, at the time of the offer, the British gas price was approximately US$7.25 per million Btu. Data suggests that UK prices have since fallen, however Reuters experts have stated that Asian spot prices may still be below the British gas price.

In either case, this shifting of prices has prompted some LNG suppliers to redirect LNG cargoes bound for Asia to northwest Europe. One notable example is Vitol, which has reportedly redirected five cargoes to Europe since the start of 2019.

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


LNG Industry is not responsible for the content of external internet sites.